Resources managed under the Improving Climate Data and Information Management Project - TF0A0433 for the year April 1, 2017 to March 31, 2018. The acconpanying notes on pages 4 to 6form an integral part of thesefinancial statements Resources managed under the Improving Climate Data and Information Management Project - TF0A0433 for the year April 1, 2017 to March 31, 2018 TABLE OF CONTENTS Page Number Independent Auditor's Report Financial Statements Statement of Sources and Uses of Funds 1 Statement of Cumulative Investments 2 Special Account Statement 3 Notes to Financial Statements 4-6 AUDITOR GENERAL'S DEPARTMENT 40 KNUTSFORD BOULEVARD P.O. BOX 455 KINGSTON 5 JAMAICA Tel. No.: 926-8309/926-5963/926-5846 Fax Number: 968-4690 amdRen@auditoraetaLo-vim. September 28, 2018 INDEPENDENT AUDITOR'S REPORT To the Director General Planning Institute of Jamaica GOIlBRD GRANT AGREEMENT TF0A0433 Improving Climate Data and Information Management Project (ICDIMP) For the Year April 1 2017 - March 31, 2018 Opinion I have audited the accompanying Financial Statements of the Improving Climate Data and Information Management Project (ICDIMP), set out on pages 1 to 7, which comprise the Statement of Sources and Uses of Funds, as at March 31, 2018, Statement of Cumulative Investments, Designated Account Reconciliation Statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. In my opinion, the appended Statements 1-3 and Supplementary Financial Information reflect a fair representation of the transactions of the Programme for the period under review and the transactions conformed to the terms of the Grant Agreement and complied with the International Public Sector Accounting Standards (IPSAS) Cash Basis. Basis for Opinion The audit of the Project was conducted in accordance with: * Article I Section 2.07 (b) (i) of Standard Conditions of the Grant Agreement between the Government of Jamaica (GOJ) and the International Bank for Reconstruction and Development (IBRD) dated October 2, 2015. * International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under ISSAIs are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of this report. My staff and I are independent of the Project in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my opinion. Management's Responsibility for the Financial Statements The executing agency, the Ministry of Science, Energy and Technology, is responsible for the preparation and fair presentation of these Financial Statements, in accordance with International Public Sector Accounting Standards (IPSAS) Cash Basis. This responsibility includes: designing, implementing and maintaining internal controls, relevant to the preparation and fair presentation of Financial Statements that are free from material misstatement, whether, due to fraud or error; selecting and applying appropriate accounting policies that are reasonable in the circumstances. The PIU is also required to present audited Financial Statements to the IBRD. The attached Financial Statements and supplementary financial information which are described hereunder were submitted to me by the Project Implementing Unit (PIU) in accordance with Article II Section 2.07 (b) (ii) of the aforementioned Standard Conditions of the Grant Agreement to reflect the transactions of the Project from April 1, 2017 to the close of the financial year at March 31, 2018. Statement 1 Statement of Sources and Uses of Funds Statement 2 Statement of Cumulative Investments Statement 3 Designated Account Reconciliation Statement of Requests for Disbursements Notes to the Financial Statements In preparing the Financial Statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there are plans to liquidate the Project or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibility for the audit of the Financial Statements My responsibility is to express an opinion on these Financial Statements based on my audit. I conducted my audit in accordance with the auditing standards issued by the International Organization of Supreme Audit Institutions (INTOSAI). Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is nota guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with ISSAls, I exercised professional judgment and maintained professional scepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. * Evaluate the appropriateness of accounting policies used and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in the auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify my opinion. The conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that presents a true and fair view. I have communicated with the World Bank regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that was identified during the audit. COMPLIANCE WITH APPLICABLE LAWS, REGULATIONS AND FINANCIAL CLAUSES OF THE GRANT AGREEMENT During the period under review, I examined compliance by the Project Implementing Unit of the Executing Agency with the applicable laws and regulations related to the Programme's financial activities and with the accounting/financial/ management clauses of the Agreement. There was general compliance with following schedules of the Grant Agreement: Article I Section 1.01; 1.02 Standard Conditions; Definitions Article II Section 2.01; 2.02 Project Execution Article III Section 3.01; 3:02 Withdrawal of Grant Funds Section 3.03; Grant Proceeds Article IV Section 4.01: Additional Remedies Article V Section 5.01-5.04: Effectiveness. Termination Article VI Section 6.01; 6.02 Recipient's Representative; Addresses OPINION - GENERAL In my opinion, the Project Implementing Unit maintained an adequate accounting system based on separate and clearly identifiable accounts which enabled the recording, monitoring and reporting of the operations and costs under the project in accordance with satisfactory accounting/financial/management practices and standards as required by Article II, Schedule 2-Section II (B) of the Grant Agreement AUDIT OF THE SPECIAL BANK ACCOUNT I have examined the appended Designated Account Reconciliation Statement, reflecting the movement in the Designated Bank Account for the period ended March 31, 2018. The Designated Bank Account No. 810282 is maintained in United States Dollars in the name of the Ministry of Finance. My examination was made in accordance with the standards of the International Organisation of Supreme Audit Institutions (INTOSAI) and accordingly included such tests of the accounting records and other procedures I considered necessary. OPINION - SPECIAL BANK ACCOUNT In my opinion, the Designated Account Reconciliation Statement reflects the total amount advanced to the Designated Account at March 31, 2018 as reconciled to the outstanding (undocumented) amount advanced to the account as at March 31, 2018 in conformity with IPSAS Cash Basis and IBRD guidelines. Auditor General of Jamaica e......... Date AUDITOR GENERAL'S DEPARTMENT 40 KNUTSFORD BOULEVARD P.O. BOX 455 KINGSTON 5 JAMAICA Tel. No.: 926-8309/926-5963/926-5846 Fax Number: 968-4690 Email: audgen@auditorgeneral.gov.jm September 27, 2018 GOI/IBRD GRANT AGREEEMENT No. TF0A0433 Planning Institute of Jamaica (PIO11) Improving Climate Data and Information Management Project (ICDIMP) For the year April 1. 2017 - March31. 2018 AUDIT OF STATEMENTS OF EXPENDITURE (SOE) PROCEDURES In the course of the Audit of the Planning Institute of Jamaica (PIOJ) Improving Climate Data and Information Management Project (ICDIMP) for the year ended March 31, 2018, I examined the following statements of expenditure submitted to the IBRD during the financial year under review in support of applications for advance of funds from the Grant Account in accordance with the Grant Agreement: Application Date advance Amount (US$) Number 7 May 18, 2017 450,746.77 10 October 27, 2017 135523.16 Total 586,369.93 The examination was done in accordance with the generally accepted auditing standards and procedures prescribed by INTOSAI and accordingly, included such tests as the verification of the internal control systems and of the accounting records, tests of the origin and eligibility of expenditures, certification and procurement procedures for services, filing of support documents and such other auditing procedures as I considered necessary in the circumstances. Opinion In my opinion, the statements of expenditure and the annexes submitted in support of them, together with the internal controls procedures used in their preparation can be relied upon to support the applications for reimbursement in conforming to the requirements of the Grant Agreement. Auditor General of Jamaica Date 1in1Dioving Cliaite Data and Information Management j-, SiomuLcisAniLUWJeof Funds Year Ended: March 31,)2018 un uC11lativelo Cumulative to Note March 31, 2018 March 31, 2017 ITS$ IIAUS$ RECEIPTS World Bank Direct Payment 5 586,369.93 1,215,496.24 629,126.31 Total Receipts 586,369.93 1,215,496.24. 629,126.31 EXPENDITURE Component 1: Upgrading Hydro- meteorological Data Collection, Processing 308,941.66 711,683.11 402,741.45 and Forecasting Systems Component 2: Climate Resilient Planning and Hydro-meteorological Information Services 191,346.78 200,926.03 9,579.25 Component 3: Climate Change Education and 56,826.81 59,361.39 2,534.58 Awareness towards Behaviour change Component 4: Project Management, 88,921.79 199,155.17 110,233.38 Monitoring and Evaluation (M&E) TOTAL EXPENDITURE (646,037.04) (1,171,125.70) (525,088.66) Net Change in Cash (59,669.11) 44,370.54 104,037.65 Opening Cash Balances Designated Account 71,537.86 71,537.86 - Project Account 32,334.18 32,334.18 Foreign Exchange Adjustment 789.17 623.56 (165.61) Closing Balance 44,994.10 148,866.14 103,872.04 Closing Cash Balances represented by: Designated Account 199.52 71,737.38 71,537.86 Project Account 44,794.58 77,128.76 32,334.18 Total Closing Balance 6 44,994.10 146,866.14 103,872.04 TaniThPalmer (Miss) Project Accountant Lehome Johnson (Mr) Project Manager Ms. Claire Bernard, Deputy Director General The accompanying notes on pages 4 to 6form an integral part of thesefinancial statements 2 Improving Climate Data and Information Management Project Project/Grant No. (P129633 /TF A043) Statement of Cumulative Investment For the Year Ended March 31, 2018 Cumulative to Cumulative to Current Year March 31,2018 March 31, 2017 Category Description US$ US$ US$ Goods, works, non-consulting services 1 Consultant's Services and Training 557,115.25 971,970.53 414,855.28 2 Operating Costs 88,921.79 199,155.17 110,233.38 Total 646,037.04 1,171,125.70 525,088.66 Miss Tanisha Palmer, Project Accountant Mr. Lehome Johnson, roject Manager Ms. Claire Bernard, Deputy Di ector General The accompanying notes on pages 4 to 6form an integral part of thesefinancial statements 3 Resources managed under the Improving Climate Data and Information Management Project - TF0A0433 for the period April 1, 2017 to March 31,2018 Notes to the financial statements Expressed in USD $ 1 Total advanced by the World Bank (or co-financier) 1,215,496.24 2 a Less: eligible expenditure for the current year ended March 31, 2018 documented by 664,920.16 World Bank 2 b Less: cumulative eligible expenditure for the prior periods ended March 31, 2017 109,969.28 documented by world bank 3 Present outstanding amount advanced to the Designated Account (1 - 2) 440,606.80 4a Balance of USD Designated Account Per Bank Reconciliation Statement as at Period Ending March 31, 2018 199.52 4 b Balance of project account per bank reconciliation statement as at period end March 31, 2018 45,982.12 5 Plus: eligible expenditure for the current year documented after the period end -March 31, 2018 (WA # 11 and 12) 395,493.70 6 Plus: total amount withdrawn and not yet claimed - Reason: Plus: amounts claimed in previous applications not yet credited at date of bank statements Application no, 8 Less: interestearned (1,187.53) 9 Total advance accounted for (no. 4 through no. 9) 440,487.81 10 Discrepancies between (# 3 & #9) - see explanation below 118.99 The difference of $118.99 represents foreign exchange variation during the year. Miss Tanisha Palmer, Project Accountant Mr. Lehome Johnson, Project Manager Ms. Clatre Befihard,1ugut Director General The accompanying notes on pages 4 to 6form an integral part of these financial statements . 4 Resources managed under the Improving Climate Data and Information Management Project- TF0A0433 for the period April 1, 2017 to March 31, 2018 Notes to the financial statements Expressed in USD 1. DENTIFICATION * Name: Improving Climate Data and Information Management Project (ICDIMP). * Grant #: TF0A0433. * Agreement signed October 2, 2015. o Project Operations Commenced: December 14, 2015. * These statements are presented in United States Dollars, which is the entity's reporting currency. All amounts have been rounded to the nearest cents, unless otherwise indicated. 2. OVERVIEW The ICDIMP is funded by the Climate Investment Funds under the Pilot Programme for Climate Resilience (PPCR) through the World Bank The ICDIMP is one of a suite of projects bringing life to Jamaica's Strategic Programme for Climate Resilience developed earlier under the first phase of the PPCR. The objective of the ICDIMP is to improve the quality and use of climate data for effective planning and action at the local and national levels. The project is being implemented at a cost of US$6.8 M and includes four components. The PIOJ is the executing entity but partners with other Government Agencies including the Ministry of Health, Met Service Jamaica, Water Resources Authority, Office of Disaster Preparedness and Emergency Management, National Spatial Data Management Division, and Rural Agricultural Development Agency in implementing the various components. PROJECT COMPONENTS The project is implemented through four components namely: * Component 1: Upgrading Hydro-meteorological Data Collection, Processing and Forecasting Systems. * Component 2: Climate Resilient Planning and Hydro-meteorological Information Services * Component 3: Climate Change Education and Awareness towards Behavioural Change. * Component 4: Project Management, Monitoring and Evaluation (M&E) MANAGEMENT REPORT The Annual Report is submitted by management for Improving Climate Data and Information Management Project for the period April 1, 2017 to March 31, 2018. AUDITING OF THE PROJECT The Project is currently audited by: The Auditor General's Department. 40 Knutsford Boulevard, Kingston 5, Jamaica. 3. The Budget 5 Resources managed under the Improving Climate Data and Information Management Project- TF0A0433 for the period April 1, 2017 to March 31, 2018 Notes to the financial statements Expressed in USD The project is being implemented at a cost of US$ 6.8M as agreed between the International Bank of Reconstruction and Development (IBRD) and the Government of Jamaica. 4. Summary of Accounting Policies I) Basis of Preparation The Project Implementation Unit (PIU) uses the cash basis of accounting to account for the project's transactions and these financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) Cash Basis. Under this basis, income is recognized when funds are received rather than when earned and expenses are recognized when payment is made rather than when obligations are incurred. Since the main objective of these financial statements is to disclose the sources and uses of funds, it is not necessary to present information adjusted for inflation. II) Recording of Transactions Transactions are entered in local currency. However, transactions are converted for preparation of the financial statements. Receipt and expenditure in local currency are translated into US dollars, by applying the commercial bank rate at which the disbursement was received. III) Fluctuation rate and fees All fees and charges for un-disbursed grant funds, as well as losses due to exchange rate fluctuations are not considered eligible project costs and are set off against interest earned on bank accounts or absorbed by the recipient. IV) Equipment and other fixed assets Equipment and other fixed assets procured with project resources are recorded at their acquisition cost at the date of purchase. Depreciation is not charged on these assets and is also not reflected in these financial statements. V) Exchange Rate for the period Expenses paid from the Jamaican dollar project account held with CIBC First Caribbean International Bank, were converted by applying the exchange rate at which the commercial bank transferred funds from the Special Bank account to the local Administrative bank account. 5. Source of Funds Disbursement Request Date Disbursement Amount Number US$ May 18, 2017 07 450,746.77 February 6, 2018 10 135,623.16 Total 586,369.93 This represents the total advance issued by the IBRD for the period ending March 31, 2018. 6 Resources managed under the Improving Climate Data and Information Management Project- TF0A0433 for the period April 1, 2017 to March 31, 2018 Notes to the financial statements Expressed in USD 6. Cash availability The cash available as at March 31, 2018, as expressed in US dollars is: Bank Accounts Total Cash Available US$ Special Account 199.52 Administrative Account 44,794.58 Total Closing Balances 44,994.10 This represents the cash balances at the end of the period for the Special Bank Account Number 810282 and Project Administrative Bank Account Number 1002190623. This Special Account is the Designated Account operated by the Bank of Jamaica for the disbursement of grant funds. Funds disbursed by the World Bank for the Project is directly transferred to this account. 7. Use of Grant Funding Total funds invested during the period amounts to approximately US$646,037.04 (cumulatively US$1,171,125.70). 8. Fixed Assets This balance represent the cost of assets purchased on behalf of implementing Agencies out of resources provided by the Improving Climate Data and Information Management Project- TF0A0433. Motor Computer Equipment Vehicles Fencing Total Cost 2,183.66 350,941.08 - - 353,124.74 Additions - 336,219.68 76,500.57 46,019.59 458,739.84 Balance at 31st March 2018 2,183.66 687,160.76 76,500.57 46,019.59 811,864.58